Tuesday, 18 October 2016

Government likely to restore disability benefits to veterans

By Ajai Shukla

Business Standard, 18th Oct 16

Facing severe criticism from serving
soldiers, veterans and civilians alike for slashing the military’s disability
pensions, top government officials tell Business Standard they are reviewing
the decision and could soon roll back at least some cuts.

As this newspaper reported (October 10, “While ‘surgical strikes’ were under way,
govt cut Army’s disability pensions”) the government issued a notification
on September 30 --- a day after announcing the army’s successful strikes on
terrorist camps in Pakistan-occupied Kashmir --- that slashed allowances that
soldiers receive for injuries/disabilities that are attributable to military
service, or aggravated by it.

In that notification the government
accepted the recommendation of the 7th Central Pay Commission (7th
CPC) to calculate disability pension according to a “slab system”, based on
rank. This significantly reduces disability pensions for the army, compared
with the “percentage system” instituted by the 6th CPC.

The government first reacted by claiming
(through “government sources” cited by several newspapers) that disability
pensions had actually been increased, not cut.

Thereafter, the government backtracked on
October 13, announcing that it had referred the decision on disability pensions
to a committee for review.

Said a government statement: “Service
Headquarters have represented that the percentage-based system should be
continued under the 7th CPC for calculating disability pension for defence
services at par with their civilian counterparts. The Ministry has referred the
representation of the Service Headquarters to the Anomaly Committee of the 7th
CPC for consideration”.

A senior government official told Business
Standard: “We are not wedded to any position. We want to ensure that disabled
soldiers do not suffer. If our review finds that the earlier ‘percentage based’
system was more beneficial than the ‘slab system’ that has now been implemented,
we will revert to the earlier system.”

A partial or complete revocation of the
“slab system” by the Anomalies Committee would have to be also cleared by the
cabinet.

With the Prime Minister’s Office (PMO)
itself spearheading this re-evaluation, the Director General of Defence
Accounts (DGDA) has been asked for detailed figures to justify its earlier
contention that the “slab based” system would benefit a larger number of
disabled veterans --- something the army flatly denies.

Earlier, the DGDA had incorrectly stated
that more than 85 per cent of soldiers drawing disability pensions would
benefit from the new “slab system”. Now it is telling the government that about
half of all disabled pensioners would benefit.

The army strongly rebuts those figures.
Its detailed calculations suggest that 90-95 per cent of all disabled
pensioners stand to lose by the new system (see chart).

Army’s
calculations

Until the September 30 notification, any officer
or soldier who suffered 100 per cent disability that was “attributable to
military service, or aggravated by military service” would get 30 per cent of his/her
last pay drawn as disability pension. In addition, they would draw a “service
component” of pension, which amounted to 50 per cent of their last pay drawn.

Under the new rules, which come into effect
retrospectively from January 1, 2016, the “service component” remains
unchanged, but a “slab system” has been introduced for disability pension ---
Rs 27,000 per month for officers, 17,000 for junior commissioned officers
(JCOs), and Rs 12,000 for other ranks (ORs).

The army calculates that only those
soldiers would benefit who are invalided out in the early stages of their
careers --- a small minority. Those who have served a few years, and all those
who have earned pensions, would lose financially.

As evident from the chart, the new system
would only benefit those jawans whose
pay at the time of release from service is less than Rs 40,000 [Rs 34,800
(basic pay) + Rs 5,200 (military service pay, or MSP)] under the 7th CPC. At higher
pay grades, 30 per cent disability pension would amount to more than Rs 12,000.

Disability Pension calculation : Enlisted
personnel

Rank

Service (in years)

Old Basic Pay + Grade Pay

7 CPC factor

7 CPC amount (in Rs)

7 CPC salary (according to fixation tables)

Military Service Pay

(MSP)

Reckonable Emolument (RE)

Disability Element for 100%

Disability component of pension

Slab Amt for 100% Disability

Loss per month

Sepoy

16

13,560

2.57

34849.2

35,300

5200

40500

0.3

12150

12,000

150

17

13,970

2.57

35902.9

37,000

5200

42200

0.3

12660

12,000

660

18

14,280

2.57

36699.6

37,000

5200

42200

0.3

12660

12,000

660

19

14,310

2.57

36776.7

37,000

5200

42200

0.3

12660

12,000

660

Naik

22

14,640

2.57

37624.8

38,100

5200

43300

0.3

12990

12,000

990

23

15,160

2.57

38961.2

39,200

5200

44400

0.3

13320

12,000

1320

24

16,610

2.57

42687.7

43,600

5200

48800

0.3

14640

12,000

2640

Havildar

24

17,460

2.57

44872.2

44,900

5200

50100

0.3

15030

12,000

3030

25

17,980

2.57

46208.6

47,600

5200

52800

0.3

15840

12,000

3840

26

18,520

2.57

47596.4

47,600

5200

52800

0.3

15840

12,000

3840

Very few jawans retire before serving 15 years, when they become eligible
for pension. Most retire after at least 17-19 years, which they have signed up
for. By that time, they have been automatically promoted to Naik (two stripes),
and their emoluments are Rs 41,100 (Rs 35,900 + Rs 5,200 MSP).

Most jawans actually attain the rank of
Havildar (three stripes), which means they are eligible for 26 years of
service, and a pay grade of Rs 50,100 (Rs 44,900 + Rs 5,200).

Hence most retirees at the jawan level (except those rare cases who
are invalided out early in their careers) earn well above the level below which
the slab system yields greater benefits. They, therefore, stand to benefit from
the percentage system.

Similarly, JCOs would only benefit from the
slab system if their pay grade at retirement is below Rs 56,200 [Rs 51,000 + Rs
5,200 (MSP)]. Above that grade, the disability pension of 30 per cent would be
greater than the slab rate of Rs 17,000. In fact, most JCOs start retiring as
Subedars, with 28 years of service, when their pay grade is Rs 57,200 (Rs
52,000 + Rs 5,200).

Disability Pension calculation : Junior
Commissioned Officers (JCOs)

Rank

Service (in years)

Old Basic Pay + Grade Pay

7 CPC factor

7 CPC amount (in Rs)

7 CPC salary (according to fixation tables)

Military Service Pay

(MSP)

Reckonable Emoluments (RE)

Disability Element for 100%

Disability component of pension

Slab Amt for 100% Disability

Loss per month

Naib
Subedar

27

19,080

2.57

49035.6

50,500

5200

55700

0.3

16710

17,000

-290

28

19,650

2.57

50500.5

52,000

5200

57200

0.3

17160

17,000

160

Subedar

28

20,660

2.57

53096.2

53,600

5200

58800

0.3

17640

17,000

640

29

21,280

2.57

54689.6

55,200

5200

60400

0.3

18120

17,000

1120

30

21,890

2.57

56257.3

56,900

5200

62100

0.3

18630

17,000

1630

Subedar
Major

31

23,430

2.57

60215.1

60,400

5200

65600

0.3

19680

17,000

2680

32

24,130

2.57

62014.1

62,200

5200

67400

0.3

20220

17,000

3220

33

24,850

2.57

63864.5

64,100

5200

69300

0.3

20790

17,000

3790

34

25,600

2.57

65792

66,000

5200

71200

0.3

21360

17,000

4360

Calculating similarly, commissioned officers
only benefit from the slab system if their pay at release is less than Rs
90,000 [Rs 74,500 + Rs 15,500 (MSP)]. That is because 30 per cent of any pay grade
above this would be greater than the slab rate of Rs 27,000. At seven years of
service, officers pay grade rises above that level. Most officers retire after
20 years of service, when they become eligible for pension.

Disability Pension Calculation : Officers

Rank

Service (in years)

Old Basic Pay + Grade Pay

7 CPC factor

7 CPC amount (in Rs)

7 CPC salary (according to fixation tables)

Military Service Pay

(MSP)

Reckonable Emoluments (RE)

Disability Element for 100%

Disability component of pension

Slab Amt for 100% Disability

Loss per month

Rank

Lt

1

21,000

2.57

53970

56,100

15,500

71600

0.3

21480

27,000

-5520

2

21,630

2.57

55589.1

56,100

15,500

71600

0.3

21480

27,000

-5520

0

Capt

3

24,360

2.57

62605.2

63,100

15,500

78600

0.3

23580

27,000

-3420

4

25,850

2.57

66434.5

67,000

15,500

82500

0.3

24750

27,000

-2250

5

26,630

2.57

68439.1

69,000

15,500

84500

0.3

25350

27,000

-1650

Maj

6

27,130

2.57

69724.1

71,500

15,500

87000

0.3

26100

27,000

-900

7

28,770

2.57

73938.9

75,800

15,500

91300

0.3

27390

27,000

390

All Officers from 7 th year of Service
will lose

8

29,640

2.57

76174.8

78,100

15,500

93600

0.3

28080

27,000

1080

9

30,530

2.57

78462.1

80,400

15,500

95900

0.3

28770

27,000

1770

10

31,900

2.57

81983

82,800

15,500

98300

0.3

29490

27,000

2490

11

33,830

2.57

86943.1

87,900

15,500

103400

0.3

31020

27,000

4020

12

34,850

2.57

89564.5

90,500

15,500

106000

0.3

31800

27,000

4800

Lt
Col

13

45,400

2.57

116678

1,16,700

15,500

132200

0.3

39660

27,000

12660

14

46,770

2.57

120198.9

1,20,200

15,500

135700

0.3

40710

27,000

13710

Col

15

51,840

2.57

133228.8

1,33,400

15,500

148900

0.3

44670

27,000

17670

Brig

29

69,180

2.57

177792.6

1,82,200

15,500

197700

0.3

59310

27,000

32310

Maj
Gen

34

77,000

2.57

197890

1,99,600

0

199600

0.3

59880

27,000

32880

Lt
Gen

36

79,000

2.57

203030

2,05,100

0

205100

0.3

61530

27,000

34530

Lt
Gen

37.5

80,000

2.57

205600

2,11,600

0

211600

0.3

63480

27,000

36480

HAG
+

Lt
Gen

39

80,000

2,25,000

0

225000

0.3

67500

27,000

40500

APEX

The army askes: if the “slab system” was indeed
beneficial for lower ranks, why hasn’t it been made applicable to other
services like the Central Armed Police Forces (CAPFs)? In fact, there is no
demand from CAPFs for extending the slab system to them.

With the military strongly arguing for a
reversion to the “percentage system” of calculation, all eyes are now on the
Anomalies Committee.

@ "The Ministry has referred the representation of the Service Headquarters to the Anomaly Committee of the 7th CPC for consideration”.The issue will be examined by the Anomaly committee now.Is the MOD in agreement with OR against the contention of the Service HQ on the issue? CGDA has no role to play in this matter except provide data asked for by the Committee.The Dis Pen (DP) inequity point being projected in 7CPC is totally misleading & false.The ratio of DP between two cat of ranks is exactly same as the ratio between their pay.For example-- A has pay of Rs 50000 & B has 150000 pm as his pay,the ratio (inequity ) is 1:3.Their DP at 30 % will be Rs 15000 & 45000 with exactly same ratio of 1:3.

In fact ALL %age based allwcs will have exactly the same ratio.It cannot be termed as inequity as it is due to the basic pay being different for different ranks.

It(inequity) is exactly same for Civ/Police forces for DP as also for ALL %ge based allwcs.

With the likely increase in MSP for JCO's & OR there will be corresponding increase in DP.

Also in time to come,hopefully, larger %ge of these ranks should be retiring at the highest applicable rank/pay marix.

Which proportion are you peddling when the table given is so self explanatory .... DP of one years service and 33 years of service should be the same ?? Why not these bands for all govt services. If Defence Services are asking for earlier system as for others - let it be at that.

It now emerges that on the Dis Pen issue falsified/doctored data & info was given to 7CPC covertly (via insiders) directly from CGDA, by passing the MOD .Apparently this was done to avoid vetting by the MOD ( & reaction of Service HQ,s ), so very essential for secrecy.

If indeed it was so then the matter needs to be investigated & those responsible for this fraud need to be identified & dealt with.

Also if it is true then the entire recommendations of 7CPC on the issue are liable to be quashed as the input info was incorrect/Falsified & not taken thru proper channels ie MOD, the concerned ministry.No comments were asked from Service HQs So secretive was it kept that 7CPC did not even discuss/raise this issue during its interaction visits with the military & veterans all over the country !!.

Overall it was a neatly executed Surgical Strike against the Armed Forces by CGDA, +- - +--&---etc , achieving total surprise & deception ,with Service HQs, with their vast intel resources, not knowing When,How & by Who all it was executed.

Obvious aim & purpose was to Degrade the Morale of All Ranks of the Armed Forces .But why & Who benifits?? Not difficult to Guess, only our adversaries !!